MEDARB (mediation-arbitration)
A contraction of the terms “mediation” and “arbitration”, Medarb was developed to benefit from the complementary advantages of these two forms of conflict resolution. It maximizes the chances of achieving a settlement through mediation, while providing the assurance of an imposed outcome to the dispute within a given timeframe through arbitration. Medarb thus provides the certainty that a negotiated or ruled outcome to the dispute will be obtained within a specific period of time.
This process can also save time and money. If the case does go to arbitration, at least the mediation process will have served to eliminate many points of contention and to draw up a list of admissions or issues that must be ruled upon. No energy is lost appointing and informing a new professional on the case. The mediator-arbitrator can proceed to the arbitration phase more quickly and handle the case more efficiently.
The mediation/arbitration process is first subjected to a contract, which defines the terms of the process, and is signed by both parties. The contract calls for a specific period of mediation and another for arbitration, should this prove necessary.
It gives both parties the opportunity to discuss every aspect of the dispute, freely and confidentially. Mediation allows them to assess their understanding of the case, explore avenues for settlement, and negotiate them. The mediator does not provide feedback on the merits of the dispute to preserve the parties’ rights to present their complete proof at the arbitration phase. Experience has shown that this is not a disadvantage, as it is balanced out by the fact that the timeframe established for the end of mediation and impending arbitration tends to favour settlements.
If the parties have failed to reach a settlement by a predetermined date, the mediator then serves as arbitrator. The parties and their attorneys are then invited to draw up a list of the admissions generally arising from facts exchanged in mediation, which makes it possible to reduce the required hearing time.
They will also draw up a list of the points of fact and law on which the arbitrator must rule according to the rules of law and the preponderance of evidence submitted during the hearings. In hearing the arbitration, the arbitrator is bound by the list of admissions and issues that must be ruled upon, and which have been committed to paper. Furthermore, he can only take into account the evidence presented to him in arbitration, and cannot consider information heard in the mediation’s plenary meeting or caucuses.
Once the list of admissions and issues to be ruled upon has been established, a tight schedule is agreed upon, making it possible to go forward with the exchange of formal positions, exhibits and others, and determine the number of hearing days needed within the timeframe set forth in the Medarb contract.
Medarb requires that the professional who administers it does so with a full knowledge of the characteristics of the two processes as well as of the roles of the mediator and arbitrator. Indeed, he must avoid any confusion between these roles, to ensure that the parties benefit from the integrity of a complete process.
Hourly rate based on the amount involved in the dispute
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For mediation
- $250,000 and under: $300
- $250,000 to $500,000: $325
- $500,000 to $1 million: $350
- $1 to $5 million: $400
- $5 to $10 million: $450
- Over $10 million: $500
- Under $1 million: $375
- $1 to $5 million: $450
- $5 million and over: $500
- organization of the Medarb
- preparation for mediation and, if required, arbitration
- the mediation and, if required, arbitration
- drafting of the award
No cancellation or adjournment charges.
No charges for the use of the Mediation Sophilex Centre.